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The contribution margin Income statement of First Cup Coffee for February follows: (Click the leon to view the contribution margin Income statement.) Flest Cup Coffee sells three small coffees for every large coffee. A small coffee sells for $3.00, with a varlable expense of $1.50. A large coffee sells for $5.00, wlth a variable expense of $2.50. Requirements 1. Determine First Cup Coffee's monthly break-even point in numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the break-even level of sales. Show only two categorles of expenses: variable and fixed. 2. Compute First Cup Coffee's margin of safety in dollars. 3. Use First Cup Coffee's operating leverage factor to determine its new operating income If sales volume Increases 15%. Prove your results using the contribution margin Income statement format. Assume the sales mix remalns unchanged. Requirement 1. Determine First Cup Coffee's monthly break-even point in numbers of small coffees and large coffees. Begin by identifying the formula to compute the total break-even point in units. = Break-even sales in units Now calculate the weighted average contribution margin per unit. (Round the weighted average contribution margin per unit to the nearest cent.) Small Large Total Less: Weighted average contribution margin per unit The break-even point is small cups and large cups of coffee, Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Small Large Total Less: Less: Operating income Requirement 2. Compute First Cup Coffee's marginatay Indolans Identry the formula to compute the margin of safety in dollars. JH Margin of safety in dollars The margin of safety in dolars Raqairamant 3. Use Flest Cup Cafe's operating leverage factor to determine to row operating income sales volume increases 15%. Prove your results using the contribution an income statement format hesume the sales mix remains unchanged. Identify the formula to compute the operaing leverage facit 1 14 peter verges Firs: Cap Coffee's operating levaraga factor is (Round your answer to two decinal places.) If First Cup Coffee can incroase sales revenue by 15%, kaaping the sales me the same operating income will be s Prepare a summary contribution margin income statement to prove your answer above. For amounts with a zere balance, make sure to enter in the appropriate coll First Cup Coffee EMact on Operating Income of 15% Increase in Sales Volume Current level Parcant increase Dollar increase Sales revenue 15% Less: Variable expenses 15% Contribution margin Change in fixed expenses Operating income before sales increase MOTO Operating income after sales increase First Cup Coffee Contribution Margin Income Statement For the Month Ended February 29 $ 88,000 Sales revenue Variable expenses: Cost of goods sold 30,000 Marketing expense 8,000 General and administrative expense 2,000 40,000 48,000 Contribution margin Fixed expenses: Marketing expense 34,650 General and administrative expense 7.350 42.000 S 6,000 Operating income